KUALA LUMPUR: Cape EMS Bhd expects its initial public offering to raise up to RM155.7 million through a public issue of 173.0 million new shares at 90 sen each.
Cape EMS launched its initial public offering (IPO) today pursuant to its listing on Bursa Malaysia's Main Market.
The company said 40.3 per cent of the proceeds would be used for the setting-up of a new cleanroom facility and acquisition of new automated production lines for its EMS operations.
A total of 34.1 per cent will be used for the construction of a New Senai 226 Warehouse and installation of automated storage facilities; 13.2 per cent for working capital and 3.0 per cent for purchase of new machinery and equipment for die cast manufacturing related services.
"The remaining 2.4 per cent of the proceeds will go towards the installation of an energy saving cooling system and 7.0 per cent is to defray the listing-related expenses," it said.
Additionally, a total of RM78.0 million is expected to be raised through the offer for sale exercise involving 86.7 million Cape EMS shares by certain shareholders.
The total gross proceeds from the offer for sale will accrue entirely to the selling shareholders.
Based on the enlarged share capital of 923.0 million shares post-IPO and retail price of 90 sen per share, Cape EMS's market capitalisation will work out to about RM830.7 million.
Managing director and group chief executive officer Tee Kim Chin said the projected growth of the global semiconductor and electronics markets would drive the demand for electronics manufacturing services (EMS).
Tee said the company had set sights on the huge growth potential of both the local and global EMS industries.
"We intend to construct a new warehouse and install automated storage facilities in the new warehouse."
Cape EMS also intends to set-up a new cleanroom facility and purchase new automated production lines for its EMS operations to enhance its production capacity.
Tee said the company would install an energy saving cooling system at its existing Senai 227 factory and buy new machinery and equipment for die cast manufacturing related services.
"We are optimistic that the added production capacity and increasing automation facilities will enhance our operational efficiency and help to reduce reliance on manual labour," he added.